Rauma Marine Constructions receives major equity investment

Rauma Marine Constructions Oy (RMC), a pioneer in arctic shipbuilding, will receive a major infusion of capital for further growth from three actors Finnish Industry Investment Ltd, Finda and a fund managed by Taaleritehdas. RMC’s strengthened position is yet another indication of the recovery of the Finnish shipbuilding industry.

Rauma Marine Constructions Oy (RMC) is a Finnish-owned shipyard with leading-edge expertise and technology in this field. Strategically, RMC specializes in the construction and maintenance of multi-purpose icebreakers, car ferries and naval vessels.

The infusion of capital and the involvement of major Finnish investors will contribute to the success and viability of the Finnish maritime cluster, and at the same time help keep the maritime industry’s value chain intact. Finnish Industry Investment Ltd, the fund managed by Taaleritehdas and Finda Oy participated in an investment round which will increase RMC’s share capital to nearly EUR 25 million. One of the existing owners, Kasvattajarahasto, managed by Aboa Venture Management, will also take part in the share issue. The strengthened capital position allows RMC to carry out major shipbuilding projects.

”The Finnish maritime industry is on the rise. We want to be involved in promoting the international growth of a company whose Arctic expertise is of the highest standard in the world,” says Investment Director Jussi Hattula of Finnish Industry Investment Ltd.

”The Finnish maritime industry represents the kind of expertise of high added value that our economy sorely needs. Together with our customers, we want to channel Finnish capital into this type of project. Taaleritehdas is pleased to be involved in strengthening the domestic ownership base which, in turn, will create jobs in Finland,” explains Chief Executive Officer Juhani Elomaa of Taaleritehdas.

“It’s great to witness the development of world-class expertise in one’s own country. We’re making a major investment in this fine growth company and its future with a view to potential listing in a few years’ time. Finda will be able to make its expertise in this area available to RMC,” says Finda’s Chief Executive Officer Jarmo Leino.

One of the objectives established by the Marine Industry 2020 working party appointed by the Ministry of Employment and the Economy is to develop Finland into a major global player in the marine industry. In Finland, the functions and services related to the Arctic marine industry are highly integrated and the entire value chain under local control.

“We’ll continue to be the number one choice as a supplier of car ferries, ice-breakers, naval vessels and as a partner, and we’ll contribute to the Finnish Arctic expertise on our part. By specializing and investing in skills and technology, Finland will continue to be an important player in the shipbuilding sector,” concludes President and Chief Executive Officer Heikki Pöntynen of RMC.

World's biggest scrubber system sets sail on Norwegian Escape

Norwegian Escape, a brand new cruise ship, which sets sail for the first time in October, is fitted with five Yara SOx scrubbers – one for each engine. The scrubbers ensure that the cruise is not just pleasurable, but also environmental friendly.

Yara Marine Technologies has developed a simple and cost-efficient solution to fight air pollution at sea: the inline scrubber. An inline scrubber is basically a “gas washing machine.” A simple cylinder that replaces the silencer of a ship engine and cleans the exhaust gas, reducing SOx emissions by up to 99%.

To make her voyages from Miami (U.S.) to the Caribbean and beyond as environmental-friendly as possible, the owners of the Norwegian Escape teamed up with Oslo-based Yara Marine Technologies to install the world’s biggest marine SOx scrubber system, with a capacity to clean emissions from 76.8 MW engine power. She has of course also additional environment protection systems onboard for other pollutants (e.g. ballast- waste- and bilge water).

“This particular delivery of our small, lightweight scrubber system was special as it is the biggest operating marine scrubber system in the world so far,” said Kai Låtun, Chief Sales & Marketing Officer in Yara Marine Technologies. “The customer is happy and the environment is protected, and those are our two ultimate goals,” he added.

Norwegian Escape is the newest fleet member of one of the world’s largest cruise ship operators: Norwegian Cruise Line. She can carry up to 4,248 passengers and 1,731 crew members. Diesel consumption at full cruising load is about 11 tons per hour, fueling an engine capacity equivalent to about 1,000 cars.

“We are very satisfied with the scrubber system delivery from Yara Marine Technologies. The system performs as guaranteed, compliance test was passed with flying colors and we had full support from Yara Marine Technologies during installation, commissioning and start up,” said Christer Karlsson, Senior Vice President Newbuilding, Norwegian Cruise Line. “Yara Marine Technologies also provided expert personnel onboard during Norwegian Escape’s maiden voyage from England to USA in case more support should be needed. Their customer support is impeccable.”

DNV GL with first guidance on fiscal and quality measurement for LNG bunkering

Until now, there has been no international standard describing the methods for fiscal measurements and suitability for liquefied natural gas (LNG) as a marine fuel, despite the growing international market for small scale LNG bunkering. DNV GL’s updated Recommended Practice (RP) is the first industry guidance on how to perform quality measurements and quantity metering of LNG fuel supply.

In order to continue meeting and supporting the market in its growing demand for cleaner fuels and versatile LNG applications, DNV GL has updated its RP for Development and operation of LNG bunkering facilities (DNVGL-RP-G105). The RP now includes a section dedicated to determining LNG quantity and its properties. The objective is to assist operators in addressing the large spread in properties, density and the calorific value among the available LNG sources globally.

This update is a key driver for the monetization of the LNG small scale distribution and infrastructure, helping to develop a more transparent and compatible market and to safeguard sustainable growth.

The RP enables the industry to understand the business impact of proper fiscal measurement. Gas from different sources with various compositions can result in substantial variation in energy content and burning properties. This may have implications for billing, the expected voyage distance and safe use in terms of operations.

“The specification of LNG as a marine fuel and required metering methodology has until now been a missing piece in the LNG as fuel puzzle,” says Martin Layfield, global segment leader of the Gas Value Chain, DNV GL. “This new RP completes the picture and will provide a level playing field for the billing process of LNG and documentation around the gas quality.”

The RP focuses on four main elements: safe design and operation, safety management systems, risk assessments and now also includes coverage on gas quality and quantity metering. The RP is in accordance with, but further elaborates on the ISO/TS 18683 Guidelines for systems and installations for supply of LNG as fuel to ships, with focus on bridging the gap between the rules for the receiving ship and the bunker supplier, such as national or port regulations and rules for LNG bunker vessels.

The scope of the DNVGL-RP-G105 covers activities and stakeholders involved in the development and operation of LNG bunkering facilities, including simultaneous operations on land and on the water. Elisabeth Tørstad, CEO of DNV GL – Oil & Gas, says “This RP aims to support the industry in the development and operation of safe LNG bunkering facilities and to ensure safety for people, the environment and compliance with regulatory targets.”

The RP is applicable to truck-to-ship, terminal-to-ship and ship-to-ship bunkering scenarios, as well as inland shipping and vessels not covered by the International Maritime Organization (IMO) regulations.

“LNG has proven to be a viable option as a bunkering fuel for ships and its use is set to soar over the next decade. As LNG is a hazardous substance, and by its nature has different risk properties than traditional fuel, the updated RP also elaborates further on how to establish proper safety zones including guidance on techniques and risk methodologies,” adds Layfield. The RP also addresses the risk evaluations that may be used for strategic considerations in the planning phase of an LNG bunkering facility project.

Management of the risks associated with LNG continues to be developed, especially as the fuel supply is not yet widely carried out on a routine basis around the world. This is addressed by DNV GL in an ongoing Joint Industry Project (JIP) to enhance understanding of the risks and hazards in small-scale LNG bunkering stations which aims to provide experimental data to validate/improve physical models and answer safety related questions. This will result in rigorous standards for safe design, siting, construction and operation of small-scale LNG bunkering stations.

MAN PrimeServ clinches large retrofit contract with Royal Caribbean Cruises Ltd.

MAN PrimeServ has won the contract from Royal Caribbean Cruises Ltd. (RCCL) to retrofit the turbochargers aboard four cruise liners from its fleet.

The contract covers the retrofit of a total of 30 turbochargers aboard four vessels – two operated by Royal Caribbean International, and two operated by Pullmantur, a wholly-owned RCCL subsidiary, along with attachment kits and technical support. The vessels Grandeur of the Seas and Enchantment of the Seas – both equipped with 4 × 12V48/60 MAN engines – will be retrofitted with 16 × TCA55 turbochargers, while the vessels Horizon and Zenith – both equipped with 2 × 9L40/54B and 5 × 6L40/54B engines – will be retrofitted with 4 × NA40/S and 10 × NA34/S turbochargers.

Speaking at RCCL headquarters in Miami, Wayne Jones, Senior Vice President and Head of MAN PrimeServ Diesel, said: “This turbocharger upgrade will not only boost engine performance but also extend engine life and support the entire operation both from a technical and cost perspective. In the end it’s an investment in sustainability.”

Gregory Purdy, Senior Vice President, Marine Operations, Royal Caribbean International, said: “Our ships are the best and most innovative in the world. Thus we are always eager to explore new solutions to increase their performance. We put high expectations in this turbocharger upgrade.”

“Our fleet has an outstanding reputation; our customers always expect the best vacation experience. To meet and even exceed this expectation we need reliable partners with focus on sustainability” underlined William Baumgartner, SVP Global Marine Operations at RCCL.

Wayne Jones was equally confident: “RCCL’s vision is exactly what we strive to achieve: to exceed our customer’s expectations and this is exactly what we hope for in this project!”

Installation of the first retrofit will take place aboard Enchantment of the Seas in December 2015 during its regular sailing schedule between Florida and the Bahamas. Each installation will take approximately 10 days per engine.

The project has been and will be handled from MAN PrimeServ Turbocharger HQ in Augsburg, in close collaboration with the local MAN PrimeServ Diesel team in Fort Lauderdale (USA).

Scanship awarded Helcom AWP retrofit contract

Scanship Holding ASA has through its subsidiary Scanship AS been awarded an AWP retrofit contract to upgrade a ship for a larger Miami based cruise line company.

The retrofit contract is the first in the cruise industry to upgrade an existing ship to comply with the new IMO Marpol standard MEPC 227(64) chapter 4.2 including phosphorous and nitrogen removal. This standard is known as the Helcom standard.

The retrofit will take place during a scheduled drydock in 2Q16.

The Scanship AWP system is today the only system in complaint Helcom operations aboard Quantum of the Seas, Norwegian Breakaway, Norwegian Getaway and Viking Star. In the next years, 18 large cruise vessels are already scheduled to enter worldwide cruise operations with Scanship compliant Helcom systems.

The class approval process with DNV GL to obtain MED B and MED F certificates according to the new Helcom standard has been based on the operation of Scanship AWP aboard RCCL and NCL cruise vessels, confirming the improvement environmental regulation for cruise ships. To date, no other suppliers has these type of systems installed on cruise vessels neither any adequacy certificates accordingly.